(USA) Do supplemental cancer/critical illness policies make sense?
(USA) Do supplemental cancer/critical illness policies make sense?
Me and my wife are in our 40s, and currently in good health. I get insurance through work, but it's a high deductible plan. I have enough in my health savings account to cover the out of pocket maximum for a few years.
Cancer does run in my family, so I was considering a cancer policy. My grandmother has one with Aflac, and she received a good payout when she was diagnosed with breast cancer. I have seen that she also only has to pay a few hundred dollars per year for her policy, which seems pretty reasonable.
However, I never really hear these policies discussed much online. Can it make financial sense to purchase? (And I guess I would keep paying it for the rest of my life) Or are these something that should be stayed away from?
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It depends on a lot of factors, but generally price and benefits. Some old cancer policies had no caps, which tended to lose insurers lots of money because health care costs have risen exponentially. Generally though, you'll be paying a premium because the insurer acquired the risk. If you could absorb the loss without it, then in general it's likely better to not purchase it.